May I share my time with Senator Moylan?
Adjournment Matters. - Closure of Ferbane Power Station.
Is that agreed? Agreed.
I am grateful to you, a Chathaoirligh, for giving me this opportunity to raise this issue on the Adjournment and I appreciate that the Minister has come to the House to respond. When I tabled the matter for debate last week, the situation looked much blacker than it does today. Thankfully, progress was made yesterday and today thanks to the intervention of the ESB group of unions. As I had to remind a journalist earlier, we are not yet out of the woods. We must ensure the opportunity now presented to us to avert a dreadful disaster is grasped and made work.
On 24 September a bombshell was dropped in County Offaly when ESB management arrived to announce their intention to recommend to the board of the ESB that the £16 million refurbishment programme in Ferbane should not proceed and, as a result, the station would close next year. This refurbishment programme was in a way a result of an initiative taken a few years ago by the ESB workers in Ferbane along with their colleagues in Bord na Móna to prolong peat generation at the station well into the next century. After a feasibility study and a report on the issue, there was great joy early in 1997 when this news was announced. It was seen as a lifeline for many communities in west Offaly in serious social and economic decline. Senator Moylan and I attended a meeting on Monday night of the West Offaly Partnership where the elements of that decline were painted in stark detail.
It was hoped with last year's announcement that jobs would be secured not only in the ESB and Bord na Móna but in the many supply and service industries and outlets dependent on these companies. On 24 September this hope seemed to be dashed with this announcement. A black depression descended on the county, particularly in the past week when no resolution seemed to be in sight. All the local bodies in the county voiced their concern. County Offaly VEC, of which I am a member, contacted the Minister and the ESB management and group of unions to express its concern about the effect Ferbane's closure would have on a number of schools in the county, many of which were already under pressure for numbers.
Offaly County Council, after an emergency meeting, set up a special group to work on the issue, which the Minister met at very short notice last week. In my contribution to the council debate I stressed that the only solution could be a negotiated one. Feelings locally were running high, boycotts and ostracisation in a small community were being talked about. Pressure such as this can divide a community for generations. I hoped that the ESB industrial council would find a solution last Thursday week and I was disappointed when it adjourned without finding one. However, I am glad that a negotiated outcome is being considered again.
Many soundings and contacts continued to be made on all sides and I welcome yesterday's initiative by the group of unions. I am glad that its proposals have been accepted by both sides as a basis for progress. I hope the industrial council will recommend a solution soon and that this will not only be accepted but implemented. Most of all, I want the refurbishment project at Ferbane to proceed without any further delay on anybody's part.
However, even if it proceeds quickly as we all hope, it will not solve the problems of west Offaly or of peat generation by the ESB in the midlands. Serious issues remain to be addressed in Rhode and Shannonbridge in my constituency and also in Lanesboro. Serious measures need to be taken by the ESB, the Minister and the Government to reassure the public that peat generation, even in a competitive environment, will remain part of the energy mix in Ireland as long as reserves permit. Confidence in these other stations is very low and must be restored if genuine partnership is to work again and if progress is to be made.
Even more fundamental is the need to plan for a future in west Offaly when peat and peat generation are no more. Even when the refurbishment at Ferbane goes ahead, it will be for a limited lifespan. A special task force or group of some type needs to be established by the Government at this stage, to address this issue, involving the ESB, Bord na Móna, the local authorities and statutory agencies with the assistance of funding from Exchequer and EU sources. People in County Offaly have first hand experience of what the loss of a peat fired power station meant in Portarlington. We do not wish to see it repeated elsewhere in our county without proper provision being made. There is no point waiting until the dreaded day comes to face up to it. We need action on this issue now.
I welcome the Minister and congratulate her on the outstanding contribution she made to resolving this matter. The news trickling through from the unions in Ferbane is that things are looking good and I thank the Minister and all those involved. They did their utmost to bring about the result which appears to have been achieved with the unions. I look forward to the Minister's comments in that regard.
We made every effort with certain people in the area to meet their requirements and bring them on side. However, some of those who were deeply involved would not meet public representatives. Some of them called a press conference today in Tullamore to make a number of announcements. I wonder why they called a press conference when they would not meet elected public representatives for the area.
The closure of the plant in Ferbane would have sounded the death knell for south-west Offaly. It would have finished the area as an industrial zone and the Bord na Móna operation in Boora would have closed. I commend a number of people in other unions for their efforts in bringing others on side. They worked long and hard and much of the time they should have spent with their families was spent trying to reach a settlement and talking common sense into certain individuals in the area. I compliment them on their efforts.
I am a member of an enterprise board in County Offaly, and over the past five years approximately 300 permanent jobs have been created. When I left home this morning it appeared that those jobs, with the exception of one or two, would be lost in one fell swoop. Thankfully, on the basis of the information available, it appears circumstances have changed and we look forward to the ESB going ahead with the developments in Ferbane. This will secure employment in the Ferbane ESB generating station and Bord na Móna.
The Fianna Fáil Party and the Minister were never found wanting in the past in ensuring the continuation and development of Bord na Móna and the ESB. I look forward to necessary developments in the future in Rhode and Shannonbridge. There is some distance to go yet and the board is due to meet on Friday. I hope that by the time it meets in Athlone this matter will have been put to rest and the Minister can concentrate on the development of this and other semi-State companies to ensure more jobs are created in County Offaly. I compliment the Minister on making herself available for this debate and thank her for her excellent work behind the scenes. She met members of Offaly County Council at short notice and ensured that the ESB met us. I thank the Minister and wish her well in the future development of County Offaly.
I am glad to be here for this important debate. Senator Gallagher and Senator Moylan put their finger on it when they said we are at the door in terms of a solution. However, we are not yet through the door and there remains cautious rather than full blooded optimism on the matter. The refurbishment of Ferbane power station is vital and necessary if the town, its environs, Shannonbridge, Boora and Blackwater, are to be sustained over the next 20 years.
The issue of refurbishment arose following an examination in 1994-5 by the Minister for Health and Children, Deputy Cowen, of the options in relation to the power stations. A firm proposal was made that unit four of the Ferbane station should be refurbished at a cost of £11 million. The cost has since increased to £16 million but the idea behind the project was to secure employment in Ferbane, Boora and elsewhere. It appeared that was the road ahead until the difficulties arose approximately 18 months ago regarding the non-implementation of part of the CCR agreement which was reached at local level. It is important to note that the plan was agreed at local level.
As we are aware, competitive manning levels and new work practices are essential if the ESB is to survive in the new liberalised regime which will come on stream on 17 February 2000. At that time 28 per cent of the top customers will be open to competition. When we talk about the new millennium it appears to be a long time away. However, the date for the new liberalised regime is only 18 months away.
The people who conceived the CCR agreement and those who followed it up and signed it were aware that changes had to take place to bring about a competitive environment. Everybody was delighted when the decision to refurbish the station was taken and they looked forward to the implementation of the plan. The construction phase alone would bring about much employment and, following completion, the idea is that it would provide secure employment for the next 20 years.
Senator Gallagher mentioned the decision not to proceed with the plan which was announced by the ESB almost three weeks ago. The shock in Ferbane and surrounding areas was huge and it reached as far as Athlone. A large amount of gloom and pessimism was engendered as it seemed there was no way out. There has been frenzied activity since. This was carried on at the proper level of communication, probing, lobbying and discussion. I commend the group of unions, the ESB management, Offaly County Council, the agencies which contacted me, including the VEC, Senator Gallagher and the Kilcormac Enterprise Group. I formally met the ESB management, accompanied by Senators Moynihan and Gallagher, Deputy Cowen and the representatives of that section of Offaly County Council. We had a good meeting and the Senators then went to the ESB.
I also formally met the unions. Over the past weeks I have had informal discussions with different members of the unions who have kept me abreast of events. I also pay tribute to John Brown and Eugene Coughlan from my Department who played a stalwart role.
This was a situation which was best served by people going about their business quietly but with a great sense of purpose. Some disputes demand shouting and others demand that work is done in a quieter fashion. This issue was one of the latter. It was an acute and intense issue which needed that level of attention and I commend the two Senators for giving it that attention. I also commend Deputy Cowen who had many discussions with me over the past few months as the situation became more difficult.
We are not through the gate yet. This evening's decision is a step forward. It has been decided that the matter should go to arbitration with the joint industrial council and that any agreement would be adhered to. The ESB has properly decided that the refurbishment will not begin until there are manifest indications that the agreement and the merging of the two grades has happened. If the ESB is ever to make headway in what will be a difficult environment, it will have to be that way. The two groups will have to be merged. I understand Senator Moynihan's comments. I also heard that there was to be a press conference this evening. Now that we have reached this point and so much work has been put in, I appeal to people not to jeopardise the agreement. All those involved should decide to move forward. Ferbane and its surrounding areas, all of those who work in the power station and all who depend on it, must be determined that there will be no faltering at the final hurdle which remains to be surmounted.
Senators Moynihan and Gallagher have played an important role. The process needed to be managed and both Senators have done so as evidenced by the timely manner of this debate. I am proud to be from Athlone. My husband's family are from County Offaly and I have had no lack of advice as to how to proceed with this matter. I am hopeful but I am also cautious. I would ask that every commitment be given by everyone to move to the final stage — the realisation of the £16 million refurbishment. The construction will give much needed employment and its implementation will guarantee employment for the next 15 to 20 years. That is the hopeful and optimistic road ahead. I thank the Senators for their contributions and the democratic and purposeful way in which they have gone about their business on this important topic.